Golf Is for Nerds Inc

question 1

Essay

Golf Is for Nerds Inc.sells 20,000 no-par value common shares for $8.00 each on a subscription basis.Terms of the sale require the purchaser to pay $3.00 per share when the contract is signed and the balance in three months' time.
Required: Prepare the journal entries at (a)the date of signing the contract; (b)the date that the remaining payment is made; (c)the date the shares are transferred.

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Definitions:

Diversify Their Portfolios

The strategy of spreading investments among various financial instruments, industries, and other categories to minimize risk.

Credit Risk

The potential that a borrower will fail to meet their obligations in accordance with agreed terms.

Capital Resources

Economic assets used by businesses to produce goods and services, such as buildings, machinery, and equipment.

Market Economy

An economic system where supply and demand dictate the production, distribution, and pricing of goods and services, with minimal government intervention.